Home price appreciation remained modest as affordability and tight inventory kept demand down, though prices are expected to accelerate in 2020, according to CoreLogic.
Annual home price growth increased 3.7% in March, but only
"The U.S. housing market continues to cool, primarily due to some of our priciest markets moving into frigid waters," Ralph McLaughlin, deputy chief economist at CoreLogic, said in a press release. "But the broader market looks more temperate as supply and demand come into balance. With
About 35% of metro areas were overvalued in March, compared to 39% at value and 26% undervalue, according to CoreLogic's Market Condition Indicators. The Las Vegas housing market led with an 8% year-over-year rise in prices, followed by Denver at 4.1% and Houston at 3.5%. At the state level, Idaho had March's largest annual change at 10.5%, with Maine's 9.1% in second and Utah's 7.8% in third.
"The cost of either buying or renting in expensive markets puts a significant strain on most consumers," said Frank Martell, president and CEO of CoreLogic. "Nearly half of survey respondents — 44% of renters — cited the cost to rent in high-priced housing markets as the No. 1 barrier to entry into homeownership. This is potentially forcing renters to wait longer to have the necessary down payment in these communities."